study of the scope of expansion of hstc

8/10/2019 Study of the Scope of Expansion of HSTC

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A Project Report

On

Study of the scope of expansion of HSTC

For

Hindustan steel trading company!

"y

#asim Hussainali $e%ani!

&nder the guidance of

Prof Trupti $ande'ar!

Su(mitted to

&ni)ersity of Pune!

*n partial fulfillment of the re+uirement for the a%ard of the degree of

,aster of "usiness Administration -,"A.

Through

/ish%a'arma *nstitute of ,anagement

Pune012

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A C 3 4 O #5 6 $ 7 6 , 6 4 T

Gratitude is the hardest of emotions to express as one doesnt find to convey what one

feels

I would like to take this opportunity to express my sincere thanks and gratitude to

,r,ohan 3ane'ar8 C6O8 Hindustan steel trading company8 Pune for giving me an

opportunity to do my summer training in the esteem organization and it has indeed been a

great learning and enjoyable experience

I would like express my deep sense of gratitude to our !xecutive $RShailesh 3asande

for permitting me to work in such a prestigious institution

I take this opportunity to express my sincere thanks towards my guide Prof Trupti

$ande'arfor her constant encouragement and guidance I am fortunate enough to have

such a great library which gets constantly updated in terms of the knowledge in different

kinds "herefore# I express my thanks towards our very own $ibrarian Prof ,anoj 7iri

%t last but not least# I am thankful to my FamilyandFriends for their moral support#

endurance and encouragement during the course of the project

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*4$69

&' () ")*I+ *%G! ()

, !xecutive &ummary ,

- Introduction to topic -

. +ompany profile /

0 &cope of work ,,

1 'esearch )bjective ,-

2 'esearch methodology ,.

3 4ata %nalysis ,2

/ 4ata Interpretation -3

5 $imitation -/

,6 +onclusion -5

,, &uggestion .6

,- 7ibliography .-

,. %nnexure ..

5ist of ta(les

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Serial 4o Charts Page 4o

, 4istribution of companies ,2

- (o of employees working ,3

. %nnual 'e8uirement of steel as raw material ,/

0 9anner of purchase ,5

1 "raders -6

2 4ifficulties encountered -,

3 :eedbacks --

/ 4ealers that purchase steel from other organization as well -.

5 !xpansion plans of organization -0

,6 +ollaboration -1

Serial 4o Figures Page 4o

, !merging age -

- +ountrys contribution to global steel industry 0

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. 9ajor &teel producers of India 2

0 4istribution of companies ,2

1 (o of employees working ,3

2 %nnual re8uirement of steel as raw material ,/


/ "raders -6


,6 :eedbacks --

,, 4ealers that purchase steel from other organization as well -.

,- !xpansion plans of organization -0

,. +ollaboration -1

!xecutive &ummary5


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Introduction

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+ompany *rofile

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SCOPE

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OBJECTIVE OF PROJECT

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'esearch

methodology

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4ata %nalysis

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DATA INTERPRETATION

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$imitation

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+onclusion

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&uggestion

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7ibliography

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%nnexure

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*4$69

&' () ")*I+ *%G! ()

, !xecutive &ummary ,

- Introduction to topic -

. +ompany profile /

0 &cope of work ,,

1 'esearch )bjective ,-

2 'esearch methodology ,.

3 4ata %nalysis ,2

/ 4ata Interpretation -3

5 $imitation -/

,6 +onclusion -5

,, &uggestion .6

,- 7ibliography .-

,. %nnexure ..

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5ist of ta(les

Serial 4o Charts Page 4o

, 4istribution of companies ,2

- (o of employees working ,3

. %nnual 'e8uirement of steel as raw material ,/


1 "raders -6


3 :eedbacks --

/ 4ealers that purchase steel from other organization as well -.

5 !xpansion plans of organization -0

,6 +ollaboration -1

Serial 4o Figures Page 4o

, !merging age -

- +ountrys contribution to global steel industry 0

. 9ajor &teel producers of India 2

0 4istribution of companies ,2

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1 (o of employees working ,3

2 %nnual re8uirement of steel as raw material ,/


/ "raders -6


,6 :eedbacks --

,, 4ealers that purchase steel from other organization as well -.

,- !xpansion plans of organization -0

,. +ollaboration -1

6xecuti)e Summary:

*rogress is a continuous process It is relative and absolute ;e cannot stop at a certain

destination and declare that target has achieved and we need not go further "he summer

training programs are designed to give the manager of the future# a feel of the corporate

happening and work culture "hese real life situations are entirely different from the

simulation exercise enacted in an artificial environment inside the classroom and it is

precisely because of this reason that this summer training is a bridge between the institute

and organization &ummer training program made us to understand how theoretical

knowledge will be applied in practical field It exactly in this context that I was privileged

enough to join


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survey of some companies %ll the information is not only collected by survey and work

visit but also by discussing with different managers in marketing department of sing iron had some disadvantages but this alloy of iron and carbon

fulfilled all that iron couldnt do "he +hinese people invented steel as it was harder than

iron and it could serve better if it is used in making weapons )ne legend says that the

sword of the first


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Figure 1

TH6 75O"A5 ST665 *4$&STR;

&teel has been the key material with which the world has reached to a developed position

%ll the engineering machines# mechanical tools and most importantly building and

construction structures like bars# rods# channels# wires# angles etc are made of steel for its

feature being hard and adaptable !arlier when the alloy of steel was not discovered# iron

was used for the said purposes but iron is usually prone to rust and is not so strong &teel

is a highly wanted alloy over the world

"he current global steel industry is in its best position in comparing to last decades "he

price has been rising continuously "he demand expectations for steel products are

rapidly growing for coming years "he shares of steel industries are also in a high pace

"he steel industry is enjoying its 2thconsecutive years of growth in supply and demand

%nd there is many more merger and ac8uisitions which overall buoyed the industry and

showed some good results# for example %rcellor ?9ittal "he subprime crisis has lead to

the recession in economy of different countries# which may lead to have a negative effect

on whole steel industry in coming years


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CO4TR*"&T*O4 OF CO&4TR*6S TO 75O"A5 ST665 *4$&STR

"he countries like +hina# @apan# India and &outh Aorea are in the top of the above in steel

production in %sian countries +hina accounts for one third of total production ie 0,5m

ton# @apan accounts for 5B ie ,,/ m ton# India accounts for 1.m ton and &outh Aorea is

accounted for 05m ton# which all totally becomes more than 16B of global production

%part from this >&%# 7'%CI$# >A accounts for the major chunk of the whole growth

Figure 2

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ST665 PRO$&CT*O4 *4 *4$*A

India is one of the few countries where the steel industry is poised for rapid growth

Indias share in world production of crude steel increased from ,1B in ,5/, to around

.1 B in -660 ;hile plant closures and privatization are rare in India# the private sector

is considered to be the engine of growth in the steel industry and technological changes

and modernization are taking place in both the public and the private sector integrated

steel plants in India &teel production of India accounted for ,0.. million tons in ,556=

5,# which gradually increased to .2,- million tons in -66.=60# as shown in "able III

"he Indian steel industry got a giant importance in the recent past when the "ata &teel

purchased the +orus steel "oday India plays a significant role in the production of steel

in the world "he Indian steel industry is growing at /30 B of +%G' &teel demand

continued to remain upbeat in -66/=-665 with consumption of finished steel growing by

a decent 2/B during %pril=9ay -66/ 4uring that period import surged by a healthy ,6

B to 63 million tones %nd export reported a ..B decline to 62 million tones ;hile

imports and consumption of finished steel reported a healthy rise# production of the steel

continued to rise at a tepid pace 4uring %pril -66/ finished steel output rose by a modest

./ B :urther in may it increased by 1-B %ggregate production growth during %pril=

9ay stood at 1, B In view of no major capacities coming on stream we estimate

finished steel production to touch 26 million tons in -66/=-665 )n the basis for last year

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of 1-3 million tones# the steel production growth for -66/=-665 comes to around ,0 B


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Figure 3

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Challenges (efore *ndian Steel *ndustry

"here are certain challenges before the steel industry of India in the recent times

India has been one of the major producers of steel in the world and has also been

attracting a lot of foreign direct investment % few issues would need to be attended

to if India wants to be counted as one of the major and most economical producers of

steel "he three areas that need to be improved upon in the view of the exports are the

infrastructure# ability to draw the top names in steel# and wealth creation issues

"he condition of the infrastructural facilities of the steel industry in India is not at all

conducive to a sustainable growth and development of the steel industry of the India

"he methods that are adopted for the creation of wealth in the Indian steel industry

are also supposed to act as hindrances to the growth and development of the Indian

steel industry "he Indian steel industry has also not been able to draw the best

professionals in the steel industry and that has been a major drawback of the industry

"he experts are also of the opinion that not enough policies or measures have been

adopted to amend the situation in case of the infrastructural facilities available in the

steel sector !ven though India is capable of producing steel at a good rate and also

increase the volume of production there is not enough land available to support such

activities )ne of the major reasons for such problems is the consistently increasing

population of India

Company profile

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#e offer:

H 'eady &tock

H 4oor delivery#

H 7and sow +utting :acility up to ,666mm

H *rofile +utting#H >ltra &onic F 9*"="esting#

H 9aterial with 9anufacturer "est +ertificate#

H uantity 4iscount

SA,CO 7RO&P:

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Shri Ambika Metal Corporation

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+ompetitive *rices

+omplaint &ettlement

+ontemporary *roducts

+ulture of +ustomer &ervices

Scope:

*une is developing city It is growing rapidly because there is large number of

educational institutions# multinational companies in here "here is lot of infrastructural

changes that will be taking place in *une "here are many manufacturing companies in

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*une %ll engineering machines# mechanical tools# buildings are made of steel as key raw

material

&teel is the material through which world has reached the developed position.%ll the

countries need steel for the infrastructural development and overall growth &teel has a

variety of grades ie above -666 but is mainly categorized in divisions ? steel flat and

steel long# depending on the shape of steel manufactured &teel flat includes steel

products in flat# plate# sheet or strip shapes "he plate shaped steel products are usually ,6

to -66 mm and thin rolled strip products are of , to ,6 mm in dimension &teel flat is

mostly used in construction# shipbuilding# pipes and boiler applications &teel long

+ategory includes steel products in long# bar or rod shape like reinforced rods made of

sponge iron "he steel long products are re8uired to produce concrete# blocks# bars# tools#

gears and engineering products

"he project was made to increase the sales of


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0E "o +ollect the +ustomers :eed 7ack

1E Identifying the scope of expansion

2E "o analyze if the company needs to reconsider the pricing of our product

R6S6ARCH ,6THO$O5O7;

'esearch is often described as an active# diligent and systematic process of in8uiry aimed

at discovering# interpreting and revising facts "his intellectual investigation produces a

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greater understanding of events# behaviors or theories and makes practical applications

through laws and theories "he term research is also used to describe a collection of

information about a particular subject and is usually associated with science and scientific

method

"asic Research

7asic research is also called as fundamental or pure research Its primary objective is the

advancement of knowledge and the theoretical understanding of the relations among the

variables It is exploratory and often driven by researchers curiosity or interest It is

conducted without any practical end in mind 7asic research often lays down the

foundation for further applied research

Applied Research

%pplied research is done to solve specific# practical 8uestions Its primary objective is not

to gain knowledge for its own sake It is usually descriptive in nature It is almost always

done on the basis of basic research "he present study is the outcome of systematic

procedures adopted by the researcher# which includes primary data collection as well as

secondary data collection

HSTC has huge plans to expand their business "o analyze the report certain

methodology were used to elaborate the topic in easy way

$ATA CO556CT*O4

Jarious data are collected from different sources &ources of these data are various

government publications# trade journal# official website of steel industries

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Primary $ata Collection:

*rimary data is originally gathered easily in hand directly % primary source is a

document or physical object which was written or created during the time under study It

offers much greater accuracy and reliability

In this study# the *rimary data is collected from following primary sources

Interview method# through 8uestionnaires

Secondary $ata Collection:

% secondary source interprets and analyzes primary sources In other words# &econdary

data is the data already collected by someone else

In this study# the &econdary data is collected from following primary sources

'eference 7ooks

;ebsites

*4STR&,64TS &S6$:

SA,P5*47:

%n integral component of a research design is the sampling plan &ample size of my

project is 26 companies

STR&CT&R6$


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,y major focus %as on +uestionnaires as my instrument It consists of a set of

8uestions which are presented to the respondents I have selected this instrument because

of its flexibility It is the common instrument used to collect primary data

"he 8uestionnaire is mentioned in the annexure

DATA ANALYSIS:

I had visited overall 26 companies

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"he regions include

7hosri

*impri

+hinchwad

"he visited companies were dealing in forgings# automobiles# engineering and job work#

manufacturing of mechanized products# machineries etc

The distri(ution of the )isited companies is as sho%n (elo%

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+


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CHART-3

Re+uirement 4o of Organi>ation

less than 166 tons .1

166=,666 tons ,2

more than ,666 5

Figure !

The company purchasing material:

"he companies buy their material in manner as

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Factors 4o of organi>ations

:ixed price 05

"ender 3

:orward auction 0

Figure "

Trade with HSTC:

%mong the visited company the companies that deal with


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Figure #

$ifficulties encountered %hile dealing %ith HSTC

%mong the dealers who deal with ation

yes ,2

(o 00


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Figure $

Feed(ac' of HSTC:

The feedback of HSTC from its dealers is shown as:

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Factors 4o of customers

Ignorance ,

*ricing policy .

Inflexibility 1

Figure 1%

The ratio of dealers that trade %ith other organi>ation as %ell:

+


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No 7

Figure 11

#illingness of the companies in terms of their expansion:

+


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Figure 12

Companies and their colla(oration %ith financial (an's:

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Figure 13

$ata interpretation

9ost of the companies that I had visited were almost medium sized industries and large

scale industries "otal number of the employees of gives us a deliberate idea about the

company and its manufacturing# its turnover and profit margins %lso# its re8uirement for

raw material indicates what amount of steel can be provided in the corresponding regions

of *impri# +hinchwad and 7hosri respectively or overall 9I4+ areas of *une region

9ost of the companies *urchase material at fixed price rather than tender or != auction

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so it enables us to undergo pricing chances as and when re8uired with respect to 8uantity

demanded by the buyer

+ompanies who do not trade with


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. +ustomers are reluctant to prevail their internal information

1. "ime also a major constrain of the project

CO4C5&S*O4


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;ith the new challenges# changing market and environment


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amount of revenue every year but again there are some problem facing by local

customers %s per the survey on various consumers of local area it shows that niform *ricing *olicy

"ighten the 'efund 9ethod

'egular :eed 7ack &ystem

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"*"5*O7RAPH;

Information collected by 9arketing 4epartment

4ata collected by different customers

9arketing research by 4r &hailesh Aasande

wwwgooglecom

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wwwhindustansteelcoin


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-E "ype of organization LLLLLLLLLLLLLLLLLLLLLLLL

.E a (ame of the +!) M 4irectorM *roprietor LLLLLLL

+ontact number LLLLLLLLLLLLLLLLLLLLLLLLLL

b (ame of marketing manger LLLLLLLLLLLLLLLLL


c (ame of the purchase manager LLLLLLLLLLLLLL


0E ;hat the total number of employees working in your companyN

a $ess than -1

b -1=16

c 16=,66

d more than ,66

1E ;hat is the annual re8uirement of input materials DrawE in tonesN

a $ess than 166 tones

b 166 =,666 tones

c more than ,666 tone

2E 4id your company purchase material from other organizationN

a Kes

b (o

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3E


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,-E +ollaboration with any banks for financial assistanceN

,O yes

-O no

If yes plz specify LLLLLLLL

,.E &ervices that you want suppliers to provide LLLLLLLLLLL

study of the scope of expansion of hstc

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